An increasing trend for mobility combined with the personal freedom of cars is also providing big opportunities for daily rental companies, according to daily rental group Enterprise Rent-a-Car.
And with the rental industry poised for stronger growth of up to 4-5% by 2007, Jim Burrell, vice-president European operations at Enterprise, believes now is the time to enter Europe.
However, there are lessons to be learned for rental companies trying to break into Europe, according to Burrell.
He said: 'Despite its size, Europe is not a monolith. There are big opportunities for the rental industry in Europe but customer focus is the single most important factor in European success.
'Daily rental companies need to listen to what their customers say. Paying attention to local customers is what drives success.'
Burrell claims Enterprise's success lies in managing its multicultural business one branch at a time, keeping the focus local.
'Groups need to stay aware of cultural and market differences. Daily rental in Europe is large but it is fragmented and it is attractive for new entrants. It is certainly an exciting time in Europe,' Burrell said.
The European rental market generates 7.6 billion Euros annually and Enterprise predicts the market will be worth 9 billion Euros by 2007.